Government Affairs

General Assembly Update

January 22, 2008

GAS TAX INCREASE TO BE CONSIDERED

The General Assembly continues its work, as committees begin wading through thousands of pieces of legislation.

The “abusive driver’ fees, enacted by the 2007 General Assembly seem doomed to repeal. However, many legislators now understand the need to replace that lost revenue VDOT had already budgeted.

More than a half a dozen bills to increase the gas tax have been introduced:

HB 275
Delegate Watts (D) Annandale
Increases the tax on gasoline, diesel fuel, and alternative fuel by $0.10 per gallon; increases the motor carrier road tax by an equivalent of $0.10 per gallon of fuel used in the Commonwealth. Indexes all motor fuels taxes every two years beginning July 1, 2009. The revenue generated is used for transportation purposes as required by existing law.

HB 490
Delegate Amundson (D) Mt. Vernon
Repeals the abusive driver fees and increases the motor fuels tax rate by $0.015 per gallon from $0.175 to $0.19.

SB 2
Senator Puller (D) Fairfax
Extends the retail sales and use tax to fuels sales. The revenue generated by the four percent state retail sales tax on fuels would be deposited into the Transportation Trust Fund. The revenue generated by the one percent local retail sales tax on fuels would be used by the respective county or city solely for transportation purposes.

SB 411
Senator Puckett (D) Tazewell
Repeals certain abusive driver fees and increases the motor fuels tax rate by $0.025 per gallon from $0.175 to $0.20.

SB 444
Senator Petersen (D) Fairfax
Repeals the abusive driver fees and increases the state motor fuels tax rate by $0.02 per gallon with (i) one-half of the revenues deposited into the Biofuels Production Fund to fund grants for biofuels production and (ii) one-half of the revenues deposited into the Highway Maintenance and Operating Fund.
SB 469
Senator Hanger (R) Staunton
Repeals the abusive driver fees, increases the state motor fuels tax rate by $0.02 per gallon, and repeals the sales tax on charges for labor or services in automobile repairs.

SB 713
Senator Saslaw (D) Fairfax
Increases the state motor fuels tax rate by $0.05 per gallon in increments of $0.01 per gallon in each of the next five fiscal years with the revenues deposited to the Highway Maintenance and Operating Fund.

It is time to let your legislator know that the “abusive driver” fees should not be repealed unless there is replacement revenue stream. Let them know you support full funding of the Commonwealth’s maintenance needs.

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